|Bid||3.85 x 8700400|
|Ask||3.86 x 51726000|
|Day's range||3.79 - 3.86|
|52-week range||2.39 - 4.03|
|PE ratio (TTM)||16.81|
|Earnings date||15 Feb. 2018|
|Forward dividend & yield||0.10 (4.01%)|
|1y target est||2.69|
This mining stock is surging today following a bullish production report and I believe there is plenty of room left for this miner to climb.
China is curtailing its polluting steel and aluminum capacity in a bid to address rising pollution levels. China exported 440,000 metric tons of unwrought aluminum last month—a YoY (year-over-year) increase of 12.8%. Last year, China’s aluminum exports rose 4.5%—compared to 2016.
Alcoa (AA), the leading US-based aluminum producer, is expected to release its 4Q17 earnings on January 17 after the markets close. In this final part of our series, we’ll see how analysts are rating the stock ahead of the 4Q17 earnings release. According to consensus estimates compiled by Thomson Reuters, Alcoa carries a mean one-year price target of $56, which represents a 0.3% downside over its closing price on January 10.
In this part of our series, we’ll see how markets are valuing Alcoa (AA). Specifically, we’ll look at the forward EV-to-EBITDA (enterprise value to earnings before interest, tax, depreciation, and amortization) multiple, which is the preferred valuation metric for metal and mining stocks. Alcoa is trading at 5.2x its 2018 consensus EBITDA and at 5.4x its consensus 2019 EBITDA.
In this article, we’ll see what the market would like to hear on Alcoa’s 4Q17 earnings call. For metal and mining companies (RIO)(AWC) like Century Aluminum (CENX) and South32 (S32), the macro environment—which includes metal and raw material prices—is equally if not more important than company-specific factors. Speaking of aluminum, we’ve seen that prices are sensitive to China’s demand-supply dynamics.
After its split, Alcoa (AA) became a pure-play aluminum producer (S32) (CENX). Like other aluminum producers, Alcoa’s fortunes are tied to metal prices.
Last month, China exported 380,000 metric tons of unwrought aluminum, which is similar to the corresponding month in 2016.
Aluminum was among the best-performing base metals in 1H17. It outperformed several other industrial metals including copper.
Like to know which sectors will be outperforming and underperforming through the Christmas and New Year? Deutsche Bank has provided some insights.